• Cotton under bullish pressure
• Likely to rise to resistance level 90.00
Cotton under bullish pressure after the price broke the resistance area lying between the key resistance level 82.50 (which stopped the previous impulse wave (i) in the middle of January) and resistance trendline of the daily up channel from the end of December. The breakout of this resistance area accelerated the active impulse wave 5 – which belongs to the medium-term upward impulse sequence (3) from the end of July.
Given the strong uptrend that can be seen on the daily Cotton charts – Cotton is expected to rise further toward the next resistance level 90.00 (target price for the completion of the active impulse wave (3)) – from where Cotton is likely to correct down – due to overbought daily Stochastic.